Chapter 23.710
HOUSING INCENTIVES/DENSITY BONUS PROVISIONS
Sections:
23.710.020 Eligibility for incentives and bonuses.
23.710.030 General provisions for incentives and bonuses.
23.710.040 Number and types of incentives and bonuses allowed.
23.710.050 Location of bonus units.
23.710.060 Continued availability.
23.710.070 Process for approval or denial.
23.710.010 Purpose.
The purpose of this chapter is to provide incentives for the production of housing for very low, low, and moderate income, special needs, and senior households in accordance with Government Code Sections 65915 through 65918. In enacting this chapter, it is the intent of the council to facilitate the development of affordable housing and to implement the goals and policies of the city’s General Plan housing element. (Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.010)].
23.710.020 Eligibility for incentives and bonuses.
The city of Rancho Cordova shall grant one density bonus, with concessions or incentives, as specified in RCMC 23.710.040 (Number and types of incentives and bonuses allowed) or provide other incentives or concessions of equivalent financial value based upon the land cost per dwelling unit, when the applicant for the housing development seeks and agrees to construct a housing development, excluding any units permitted by the density bonus awarded pursuant to this chapter, that will contain at least one of the following:
A. Ten percent of the total units of a housing development for lower income households.
B. Five percent of the total units of a housing development for very low income households.
C. Housing for special needs populations.
D. A senior citizen housing development as defined in Sections 51.3 and 51.12 of the California Civil Code pursuant to Section 65915(b)(1)(C), or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Section 798.76 or 799.5 of the Civil Code.
E. Ten percent of the total dwelling units in a common interest development as defined in Section 4100 of the California Civil Code for persons and families of moderate income, as defined in Section 50093 of the Health and Safety Code; provided, that all units in the development are offered to the public for purchase.
F. Ten percent of the total units of a housing development for transitional foster youth, as defined in Section 66025.9 of the Education Code, disabled veterans, as defined in Section 18541, or homeless persons, as defined in the federal McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 et seq.). The units described in this subparagraph shall be subject to a recorded affordability restriction of 55 years and shall be provided at the same affordability level as very low income units. Twenty percent of the total units for lower income students in a student housing development shall meet the requirements of Section 65915(b).
G. One hundred percent of all units in the development, including total units and density bonus units, but exclusive of a manager’s unit or units, are for lower income households, as defined by Section 50079.5 of the Health and Safety Code, except that up to 20 percent of the units in the development, including total units and density bonus units, may be for moderate income households, as defined in Section 50053 of the Health and Safety Code. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.030). Formerly 23.710.030].
23.710.030 General provisions for incentives and bonuses.
The following general provisions apply to the application and determination of all incentives and bonuses:
A. All density calculations resulting in fractional units shall be rounded up to the next whole number.
B. The granting of a density bonus shall not be interpreted, in and of itself, to require a General Plan amendment, rezone, or other discretionary approval.
C. The density bonus shall not be included when determining the number of housing units that is equal to five or 10 percent of the total.
D. Upon request by the applicant, the city shall not require that a housing development meeting the requirements of RCMC 23.710.020 (Eligibility for incentives and bonuses) provide a vehicular parking ratio, inclusive of handicapped and guest parking, that exceeds the following:
1. Zero (studio) to one bedrooms: one on-site parking space per unit.
2. Two to three bedrooms: one and one-half on-site parking spaces per unit.
3. Four and more bedrooms: two and one-half parking spaces per unit.
E. If the total number of parking spaces required for a housing development is other than a whole number, the number shall be rounded up to the next whole number. For purposes of this subsection, a development may provide on-site parking through tandem parking or uncovered parking, but not through on-street parking.
F. The city shall not apply any development standard that would have the effect of precluding the construction of a housing development meeting the requirements of RCMC 23.710.020 (Eligibility for incentives and bonuses) at the densities or with the incentives permitted by this chapter. An applicant may submit to the city a proposal for the waiver or reduction of development standards. Nothing in this subsection, however, shall be interpreted to require the city to waive or reduce development standards if the waiver or reduction would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or the physical environment or on any real property that is listed in the California Register of Historical Resources and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. Furthermore, the applicant shall be required to prove that the waiver or modification is necessary to make the target units economically feasible. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.040). Formerly 23.710.040].
23.710.040 Number and types of incentives and bonuses allowed.
A. General Project Density Bonus. A housing development that satisfies all applicable provisions of this chapter shall be entitled to the following density bonus:
1. For developments providing lower income target units, a 20 percent base density bonus plus a one-and-one-half percent supplemental increase over that base for every one percent increase in low income units from 10 to 20 percent. A 35 percent base density bonus plus an additional 3.75 density bonus shall be added with each incremental increase starting from 20 to 24 percent of affordable units. The maximum density bonus allowed including supplemental increases is 50 percent.
2. For developments providing very low income target units, a 20 percent base density bonus plus a two-and-one-half percent supplemental increase over that base for every one percent increase in very low income units from five to 10 percent. A 35 percent base density bonus plus an additional 3.75 density bonus shall be added with each incremental increase starting from 11 to 15 percent of affordable units. The maximum density bonus allowed including supplemental increases is 50 percent.
3. For developments providing moderate income target units, a 50 percent density bonus is eligible for when 44 percent of units are set aside (for-sale units only).
4. An applicant for a senior citizen housing development or a mobile home park that limits residency based on age requirements for housing for older persons pursuant to Civil Code Sections 798.76 or 799.5 is entitled to a density bonus of 20 percent of the number of senior citizen housing development units and up to a maximum of 50 percent (Government Code Sections 65915(b)(1)(C) and 65915(f)(3)).
5. For common interest developments providing moderate income target units, a five percent base density bonus plus a one percent increase in moderate income units above 10 percent. The maximum density bonus allowed including supplemental increases is 35 percent.
B. Number of Incentives or Concessions. In addition to the eligible density bonus percentage described in this section, an applicant may request one or more incentives or concessions in connection with its application for a density bonus as follows:
1. One incentive or concession for projects that include at least 10 percent of the total units for lower income households, at least five percent for very low income households, or at least 10 percent for persons and families of moderate income in a common interest development.
2. Two incentives or concessions for projects that include at least 17 percent of the total units for lower income households, at least 10 percent for very low income households, or at least 20 percent for persons and families of moderate income in a common interest development.
3. Three incentives or concessions for projects that include at least 24 percent of the total units for lower income households, at least 15 percent for very low income households, or at least 30 percent for persons and families of moderate income in a common interest development.
4. Four incentives or concessions for projects with 100 percent of all units in the development (including total units and density bonus units) are for lower income households, or 20 percent of the units in the development are for moderate income households, as defined in Section 50053 of the Health and Safety Code. If the project is located within one-half mile of a major transit stop, the applicant shall also receive a height increase of up to three additional stories, or 33 feet.
|
Number of Incentives/ |
Very Low Income Percentage |
Low Income Percentage |
Moderate Income Percentage |
|---|---|---|---|
|
1 |
5% |
10% |
10% |
|
2 |
10% |
17% |
20% |
|
3 |
15% |
24% |
30% |
|
4 |
100% Low/Very Low/Mod (20% Moderate allowed) |
100% Low/Very Low/Mod (20% Moderate allowed) |
100% Low/Very Low/Mod (20% Moderate allowed) |
C. Available Incentives and Concessions. The following incentives and concessions are available for compliance with this chapter:
1. A reduction in the site development standards or a modification of zoning code requirements or architectural design requirements that exceed the minimum building standards approved by the California Building Standards Commission as provided in Part 2.5, Section 18907 of Division 13 of the Health and Safety Code, including but not limited to a reduction in setback and square footage requirements and in ratio of vehicle parking spaces that would otherwise be required and that results in identifiable, financially sufficient, and actual cost reductions.
2. Approval of mixed-use development in conjunction with the housing development if the nonresidential land uses will reduce the cost of the housing development and the nonresidential land uses are compatible with the housing development and surrounding development.
3. Other regulatory incentives or concessions proposed by the applicant or that the city determines will result in identifiable, financially sufficient, and actual cost reductions.
4. Priority processing of a housing development that provides income-restricted units.
5. The city may provide additional waivers or reductions in development standards for projects located within a one-half-mile radius of a major transit stop. A major transit stop is defined as an existing rail or bus rapid transit station or the intersection of two or more major bus routes with a frequency of service interval of 15 minutes or less during the morning and afternoon peak commute periods.
6. The city shall provide further reduced parking standards for eligible residential projects which provide the following: unobstructed access to a major transit stop; or units that are restricted to for-rent housing for individuals who are 62 years of age or older with paratransit service or unobstructed access to a fixed bus route that operates at least eight times per day.
7. A floor area ratio density bonus may be granted to an eligible housing development, upon request of the developer, in lieu of a density bonus awarded based on dwelling units per acre.
a. In calculating the floor area ratio bonus pursuant to this section, the allowable gross residential area in square feet shall be the product of the following amounts:
i. The allowable residential base density in dwelling units per acre.
ii. The site area in square feet, divided by 43,560.
b. If an eligible housing development is zoned for mixed-use purposes, any floor area ratio requirement under a zoning ordinance or land use element of the General Plan applicable to the nonresidential portion of the eligible residential development, shall continue to apply notwithstanding the award of a floor area ratio bonus in accordance with this section.
c. An applicant for a floor area ratio bonus may also submit to the city a proposal for specific incentives or concessions pursuant to this chapter.
8. An applicant seeking to develop an eligible residential development shall be allowed to calculate impact fees based on square feet, instead of on a per-unit basis.
D. Density Bonus for Housing Developments with 100 Percent Affordable Housing.
1. Criteria. For a density bonus to be granted under this subsection, 100 percent of the total units, exclusive of a manager’s unit or units, are restricted to very low, low, and moderate income households (maximum 20 percent moderate).
2. Density Bonus Allowance. An applicant for a housing development with 100 percent affordable housing is entitled to:
a. Except as otherwise provided, the density bonus shall be up to 80 percent of the number of units for very low and low income households.
3. Other Allowances.
a. If the project is located within one-half mile of a major transit stop as defined in subdivision (b) of Section 21155 of the Public Resources Code:
i. The applicant may also receive a height increase of up to three additional stories or 33 feet.
ii. The jurisdiction shall not impose any maximum controls on density. If no maximum controls on density are imposed on a project, then no other waivers or reductions of development standards would be allowed.
E. Additional Density Bonus and Incentives and Concessions for Donation of Land to the City.
1. When an applicant for a tentative subdivision map, parcel map, or other residential development approval donates land to the city and agrees to include a minimum of 10 percent of the total units before the density bonus for very low income households, as provided for in this subsection (E), the applicant shall be entitled to a 15 percent base density bonus plus a one percent supplemental increase for each additional percentage of very low income units, to a maximum density bonus of 35 percent.
2. The density bonus provided in this subsection (E) shall be in addition to any other density bonus provided by this chapter to a maximum combined density bonus of 35 percent.
3. The applicant shall be eligible for the increased density bonus described in this subsection (E) if all of the following conditions are met:
a. The applicant donates and transfers the land no later than the date of approval of the final subdivision map, parcel map, or residential development application.
b. The developable acreage and zoning designation of the land being transferred are sufficient to permit construction of units affordable to very low income households in an amount not less than 10 percent of the number of residential units of the proposed development.
c. The transferred land is at least one acre in size or is of sufficient size to permit development of at least 40 units, has the appropriate General Plan land use and zoning designations, and is or will be served by all required public facilities and infrastructure.
d. The transferred land and the affordable units shall be subject to a deed restriction ensuring continued affordability of the units consistent with the requirements of this chapter.
e. The land is transferred to the city or to a housing developer approved by the city.
f. The transferred land shall be within the boundary of the proposed development or, at the city’s approval, within one-quarter mile of the boundary of the proposed development.
4. Nothing in this subsection shall be construed to enlarge or diminish the authority of the city to require a developer to donate land as a condition of development.
F. Additional Density Bonus and Incentives and Concessions for Development of Child Care Facility.
1. Housing developments meeting the requirements of RCMC 23.710.020 (Eligibility for incentives and bonuses) and including a child care facility that will be located on the premises of, as part of, or adjacent to the housing development shall receive either of the following:
a. An additional density bonus that is an amount of square footage of residential space that is equal to or greater than the amount of square footage in the child care facility.
b. An additional incentive or concession that contributes significantly to the economic feasibility of the construction of the child care facility.
2. The density bonus housing agreement for the housing development shall ensure that:
a. The child care facility shall remain in operation for a period of time that is as long as or longer than the period of time during which the target units are required to remain affordable; and
b. Of the children who attend the child care facility, the children of very low income households, lower income households, or persons or families of moderate income shall equal a percentage that is equal to or greater than the percentage of target units that are required pursuant to RCMC 23.710.020 (Eligibility for incentives and bonuses).
3. The city shall not be required to provide a density bonus or incentive or concession for a child care facility if it makes a written finding, based upon substantial evidence, that the community has adequate child care facilities. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.050). Formerly 23.710.050].
23.710.050 Location of bonus units.
As required by state law, the location of density bonus units in the housing development may be at the discretion of the developer. However, the inclusionary units shall be dispersed throughout the development (where feasible); shall contain, on average, the same number of bedrooms as the noninclusionary units in the development; and shall be compatible with the design or use of the remaining units in terms of appearance, materials, and quality finish. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.060). Formerly 23.710.060].
23.710.060 Continued availability.
A. If a housing development providing low or very low income target units receives only a density bonus, the target units must remain restricted to low or very low income households for a minimum of 30 years from the date of issuance of the certificate of occupancy.
B. If a housing development providing low or very low income target units receives both a density bonus and an additional incentive, the target units must remain restricted to low or very low income households for a minimum of 50 years from the date of issuance of the certificate of occupancy.
C. In the case of a common interest housing development providing moderate income target units, the initial occupant of the target unit must be a person or family of moderate income. Upon resale, the seller of the target units shall retain the value of any improvements, the down payment, and the seller’s proportionate share of appreciation, which shall be used within three years for any of the purposes described in subdivision (e) of Section 33334.2 of the California Health and Safety Code that promote homeownership. The city’s proportionate share shall be equal to the percentage by which the initial sale price to the moderate income household was less than the fair market value of the home at the time of the initial sale. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.070). Formerly 23.710.070].
23.710.070 Process for approval or denial.
A. Process for Approval. The density bonus and incentive(s) and concession(s) request shall be considered in conjunction with any necessary development entitlements for the project. The designated approval authority for density bonuses shall be the council. In approving the density bonus and any related incentives or concessions, the city and applicant shall enter into a density bonus agreement. The form and content of the density bonus agreement shall be determined by the city.
B. Approval Required Unless Denial Findings Made. The city shall grant the density bonus, incentive(s), and concession(s) requested by the applicant unless the city makes a written finding, based upon substantial evidence, of either of the following:
1. The incentive or concession is not required in order to provide for affordable housing costs or affordable rents.
2. The incentive or concession would have a specific adverse impact, as defined in paragraph (2) of subdivision (d) of Section 65589.5 of the California Government Code, upon public health and safety or physical environment or any real property that is listed in the California Register of Historical Resources and for which the city determines there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact without rendering the development unaffordable to low and moderate income households. [Ord. 17-2021 § 3 (Exh. A); Ord. 4-2017 § 3 (Exh. B); Ord. 12-2011 § 3 (Exh. A); Ord. 27-2008 § 1 (Exh. A § 4.4.080). Formerly 23.710.080].